Which Inventory Costing Method Results in the Lowest Income Tax

question 144

Multiple Choice

Which inventory costing method results in the lowest income tax expense during a period of decreasing prices?

• A)FIFO
• B)LIFO
• C)Specific Identification
• D)Weighted Average Cost

---

Definitions:

Rome

The capital city of Italy, rich in history and home to numerous archaeological and artistic treasures, pivotal in the development of Western civilization.

Cathedral of Florence

A renowned Gothic-style cathedral in Florence, Italy, known for its massive dome engineered by Filippo Brunelleschi.

Arnolfo di Cambio

A prominent Italian architect and sculptor of the late 13th to early 14th century, known for his work on the Florence Cathedral.

Architect

A professional who plans, designs, and oversees the construction of buildings, combining artistic vision with practical considerations.